Chicago City Council Housing Committee Clears $45M Affordable Co-Op Conversion Fund

CHICAGO, IL — The Chicago City Council’s Committee on Housing and Real Estate advanced a landmark $45 million Tenant Opportunity to Purchase revolving loan fund on Tuesday, creating a public financing vehicle to help working-class renters convert multi-unit rental buildings into limited-equity housing cooperatives.

Financing Structure and Capital Mechanics

The fund, capitalized using municipal bond proceeds and federal Community Development Block Grants (CDBG), provides low-interest, long-term subordinate acquisition loans and technical assistance grants to tenant associations and community land trusts in Woodlawn, South Shore, Humboldt Park, and East Garfield Park.

The program is designed to counteract predatory real estate speculation and prevent mass evictions, enabling long-term tenants to achieve collective homeownership and build generational stability while preserving permanent affordability deed restrictions.

Council Committee Debate

Committee Chair Byron Sigcho-Lopez championed the ordinance, stating that municipal housing policy must actively build cooperative wealth for working families rather than relying exclusively on corporate landlord tax incentives.

Real estate management associations raised procedural concerns regarding transaction closing timelines, prompting the committee to adopt a 90-day purchase notice window to ensure transaction feasibility.

Full Council Vote Scheduled

The measure advances to the full Chicago City Council for final statutory enactment at its scheduled meeting on September 9, 2026.